Business Culture and Strategy
The report is about the change in the external environment in JD wetherspoon. It analysis the PESTEL and SWOT of the J D Wetherspoon. It also analysis the relationship between organisational culture and organisational behavior in the JD wetherspoon. J D Wetherspoon plc was founded by Tim Martin who opened the first J D Wtherspoon pub in1979.
It now has over 600 pubs, which means that it has expanded on average at the rate of about one new pub each week. 2. 1 PESTELSocial-cultural: J D Wetherspoon provide children’s cutlery with children’s meals to convenience children. Most pubs now have a dedicated family dining area where children and adults can eat together. The area is restricted and limited to meal times only.
Children are not allowed in the bar areas and the company believe it does greatly alter the atmosphere of the pubs. Environmental: At least a quarter of the space in each establishment is non-smoking to protect customers’ health. Technological: Each has a ventilation system (costing more than ? 100,000) which aims to ensure that customers do not leave smelling of smoke.J D Wetherspoon also have plasma screens and can show TV programmes to attract customers. Economic: Tim Martin is a noted euro-sceptic and in 2002 printed 500,000 beer mats and put up 10,000‘save the pound’ posters to encourage customers to think about the issue while they drink. But union leaders and others condemned his actions.
So that people who support Euro may not want to go to the J D Wetherspoon. Political: From 2002 — 2004. There two other factors had an influence on the licensing trade. Firstly, supermarkets began selling drinks, particularly premium lager, at loss-leader prices.This makes it difficult for pubs to compete on price and encourages drinking at home.
Secondly, there was increasing public and government concern about binge drinking and the consequent anti-social behaviour particularly in city centres. Pubs cannot be seen to be encouraging this state of affairs as it brings them bad publicity. Legal: A ruling from the Monopolies and Mergers Commission broke the traditional link between the brewing companies and pubs known as the ‘tied house’ system which severely limited the number of pubs which brewer could operate. 2. SWOT analysis Strengths Weaknesses Large chain system The initial request for franchise stores is high for future Good ventilation system Some club have no music or TV programmes Comfortable environment Good quality wine Real ale beers at relatively low prices Opportunities Threats Purchase other pubs Ruling from MMC Adapt to MMC’s rule quickly Supermarket begin sell drinks Other pubs adapt‘tied house’ For Strengths: J D Wetherspoon became a plc in 1992 at which time it consisted of a chain of 44 pubs. Each has a ventilation system (costing more than ? 00,000) which aims to ensure that customers do not leave smelling of smoke.
Real ale beers at relatively low prices, good quality wine and comfortable environment will attract more customers. For Weaknesses: In2002, J D Wetherspoon pubs did not show World Cup football and sales suffered as a result. People who like music watch football will not choose a pub have no music and TV. For Opportunities: Adapt MMC’s new rule quickly, developed new products and new services. In 2000, it acquired the Lloyds pub chain consisting of 10 pubs.
It’s good for J D Wetherspoon’s development in the future.For Threats: The traditional link between the brewing companies and pubs known as the ‘tied house’ system had been broken by a ruling from the Monopolies and Mergers Commission which severely limited the number of pubs which brewer could operate. Supermarket begin sell drinks makes it difficult for pubs to compete on price and encourage drinking at home. The retail licensing market had adapted to the changes in the ‘tied house’ system and other retail pub chains like Regent Inns and Punch Taverns had been developing their businesses. J D Wetherspoon will loss their customers.
2. 3 How to conduct SWOT analysisS and W need Comparison with the same industry. SWOT have Dynamic changes. S and W may interchangeable. Some times Strengths will become Weaknesses.
For example, the original bar in the city center will attract a large number of customers, and later In town and city centers, in particular, the market now appears to be over-supplied. O and T can use PESTEL to analysis. Since S W change, it brings O T sometimes. 3. 1 Organisation culture in JD Wetherspoon ‘Shared values’ are concerned with what ought to be in an organization and tell employees what things are important.
For example:People are its best asset :Wetherspoon’s has consistently claimed that people are its best asset. It has a flexible training policy which enables people from all kinds of different backgrounds to join the company. It is committed to lifelong training and it provides staff with opportunities to gain relevant qualifications such as those offered by the British Institute of Innkeeping. Every member of staff is considered as potential management material and 20% of senior managers began as bar staff or cleaners. It recognises that employees will not stay with it for all their working lives but does wish to build a sense of loyalty.
People-oriented : J D Wetherspoon has a ‘lifestyle guarantee’ which aims to give managers time for a life outside work. They work a 48 hour week with two consecutive days off and a maximum of four late closures a week. All managers get a day off in lieu for every bank holiday they work. Training courses, area meetings and shift management meetings form part of the working week so that they do not encroach into staff leisure time. Focus on communication: Wetherspoon’s ‘listening’ policy is based on a system successfully pioneered by the hi-fi retail, Richer Sounds.
Julian Richer, owner of the company, acted as a consultant to J D Wetherspoon. He is sceptical about the value of customer research and advised J D Wetherspoon to follow his company’s example and listen to staff. 3. 2 The type of culture that J D Wetherspoon has In the 20th century J D Wetherspoon’s culture is ‘Work hard and play hard’. 1. It has quick feedback to the changes in internal.
J D Wetherspoon focus on communication: Wetherspoon’s ‘listening’ policy is based on a system successfully pioneered by the hi-fi retail, Richer Sounds. 2.Feedback on the company’s profits faster since J D Wetherspoon Open branches and invest in Stock market. J D Wetherspoon would quickly adopt to improve its policies for example:starting training courses later in the day to save on travel costs and introducing a hotness rating on the curry menu. 3.
Risk is relatively low since J D Wetherspoon is really strong. It has developed into a strong company which consists of over 600 pubs over the years since 1979. 4 It often celebrate their success with entertainment. J D Wetherspoon’s culture have People are its best asset, People-oriented and foucs on communication. . 3 relationships between organizational culture and organizational behavior in J D Wetherspoon Organizational couture influence organizational behavior, organizational behavior reflect Organizational couture, They are equal and consistent.
Work hard culture has rapid feedback/reward and low risk, this typical in large organisations that strive for high-quality customer service. It is often characterised by team meetings, jargon and buzzwords. Stress comes from quantity of work rather than uncertainty. High-speed action often leads to high-speed recreation activities.In this case, the staff work a 48 hour week with two consecutive days off and a maximum of four late closures a week.
All managers get a day off in lieu for every bank holiday they work. Work do not Occupation into staff’s Play time. To current interest in organization culture derives from its presumed impact on organization effectiveness. culture service as a sense-making and control mechanism that guides and shapes the attitudes and behaviors of employees. it generates a commitment to something rather then on individual employee’s self interest.
rganization culture can improve an organization’s ability to implement business plans as well as achieve high level of excellence. 3.4 different cultures in company J D Wetherspoon’s culture changed from Work hard/play hard to Tough guy/macho culture in the 21st century, the main changes is the increase of the external threats. J D Wwtherspoon was facing much more competition in the 21th Century. The retail licensing market had adapted to the changes in the ‘tied house’ system and other retail pub chains like Regent Inns and Punch Taverns had been developing their businesses. uring 2002 — 2004, supermarkets began selling drinks, particularly premium lager, at loss-leader prices.
This makes it difficult for pubs to compete on price and encourages drinking at home. Secondly, there was increasing public and government concern about binge drinking and the consequent anti-social behaviour particularly in city centres. Pubs cannot be seen to be encouraging this state of affairs as it brings them bad publicity. In 2001, the number of new openings was lower than the previous year and, in subsequent years, sales and profit growth have also slowed down.The company had long been a stock market favourite but the share price also fell.
In 2004, the planned opening rate for new pubs was scaled down to about 30 a year. Tim Martin gave up day-to-day control in 2004 to become non-executive chairman working two days a week. He continues to hold over 15% of the shares and to influence and contribute to the way the business operates. 4. Conclusion This report describes the strategy and culture of J D Wetherspoon. It analyzed the aspects of external environment and organisational culture.
From the this report, the PESTEL analysis and SWOT analysis have used to examine the development of company on Strategy and Culture aspect. It proved that J D Wetherspoon is a successful company.